betr Entertainment Limited (ASX:BBT) Announces Equity Raising and PointsBet Acquisition Proposal
Equity Raising
betr Entertainment Limited (ASX:BBT) has launched a fully underwritten equity raise of approximately A$130 million. The capital raising consists of a pro-rata accelerated non-renounceable entitlement offer and an institutional placement. The proceeds will fund the acquisition of a 19.9% stake in PointsBet Holdings Limited, partially fund the proposed acquisition of PointsBet, and cover associated offer costs.
PointsBet Acquisition Proposal
betr has become the largest shareholder in PointsBet with a 19.9% stake and intends to implement its own acquisition proposal, voting against MIXI’s current proposal. betr’s revised offer values PointsBet at $360 million, incorporating over $40 million in cost synergies and offering greater value to PointsBet shareholders compared to MIXI’s scheme.
Funding and Synergies
The acquisition is supported by a credit-approved $120 million debt facility from National Australia Bank and a non-binding sale of PointsBet Canada’s assets for approximately A$45 million. betr expects to realise over $40 million in cost synergies annually, supported by previous transactions with BlueBet and TopSport that have realised around $26 million per annum.
Financial Performance
In Q3 FY25, betr reported $376 million in turnover, up 170% from Q3 FY24. Operating cash flow for the quarter was $3.3 million, reflecting strong trading performance.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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